Iron ore futures climbed on Wednesday, supported by improving market fundamentals, though demand concerns persist.
Rising steel production, driven by seasonal demand and improved mill margins, bolstered market sentiment. Additionally, positive economic indicators provided further support, with China’s factory activity expanding at its fastest pace in four months in March.
However, the long-term demand outlook for iron ore remains uncertain. Rising protectionist measures against Chinese steel and potential government-mandated steel output cuts weigh on future demand. Meanwhile, U.S. plans to impose new tariffs, raising the risk of a major trade war, add to market uncertainty.
On the Dalian Commodity Exchange (DCE), the most-traded May iron ore contract rose 1.09pct to 791.5 yuan (USD 108.9) per ton. Coke and coking coal futures also gained, rising 0.65pct and 0.1pct, respectively, to 1,636.5 yuan (USD 225) and 1,001.5 yuan (USD 138) per ton.
On the Shanghai Futures Exchange, rebar futures increased 0.32pct to 3,166 yuan (USD 436) per ton, while HRC futures edged up 0.24pct to 3,352 yuan (USD 461). Wire rod futures rose 0.89pct to 3,410 yuan (USD 469), and stainless steel futures gained 0.71pct to 13,560 yuan (USD 1,867) per ton.
1 USD / 7.26 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,410 |
0.89 |
0.65 |
| HRC | 3,352 |
0.24 |
-0.21 |
| Rebar | 3,166 |
0.32 |
-0.13 |
| Stainless Steel | 13,560 |
0.71 |
0.11 |
| Iron Ore | 791.5 |
1.09 |
-0.06 |
| Coke | 1,636.5 |
0.65 |
-0.70 |
| Coking Coal | 1,001.5 |
0.10 |
-0.65 |